PPI and CCJ

[Brahumbug]

I have just been asked a question by a friend and I have no idea of the right answer, so I thought I would consult the collective wisdom of mumsnet! She says that she definitely had PPI in the past. Due to a break up of a relationship she defaulted on 3 loans, but the debts are now time barred. If she claimed PPI would that reactivate them, so to speak? When we looked up debt online,the advice was that if you acknowledge the debt they can restart the process of claiming it back from you. Would claiming a PPI refund do this?

Sounds like it. Sounds like a can of worms waiting to explode.

Nope. Once the 6 years are up without acknowledgement they can't be 'restarted'. They may take the PPI to offset the outstanding amount though, but they don't always!

If a dent is statute barred nothing can unbar it. They can use the money to pay off the debt as pp said

Debt not dent!

Thanks for that. The debtors being able to take the PPI to offset the debt does make sense. Perhaps still worth trying.

I have just found something interesting. The debt will definitely remain statute barred even if there is a claim for PPI. If however, you use a claims company you could end up in difficulties. The lender may keep the PPI compensation to offset the debt, but you then owe money to the claims company for their services, which could potentially be a lot of money!

You can do it yourself really easily though.